NEW HOPE SOCIETY,BERHAMPUR V. ITO EXEMPTION, BERHAMPUR

ITA 44/CTK/2026

AI Insights

The case involves New Hope Society, which appealed against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2016-17. The primary issue was the tax treatment of Rs. 51,92,000 shown as corpus donations in the assessee's balance sheet, which was actually received for laboratory equipment costs. The Assessing Officer had taxed this amount as revenue. The tribunal examined the submissions and evidence presented, including the depreciation schedule and the nature of the development fees collected. The tribunal concluded that the fees were part of consolidated student fees and not intended as corpus donations, thus affirming the tax treatment as revenue.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841351 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 17-01-2026
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER ITA No. 44/CTK/2026 (Assessment Year: 2016-17) New Hope Society, C/o- New Hope Society Main Road, Hillpatna, Berhampur-760005 (Odisha) PAN No. AABTN 1122 D Vs. I.T.O., Exemption Ward, Berhampur. Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri S.K. Sabat, A.R. Department represented by Shri Sanjib Banerjee, Sr.DR Date of hearing 23/02/2026 Date of pronouncement 23/02/2026 O R D E R PER: BENCH 1. This is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC, Delhi in Appeal No. CIT(A), Bhubaneswar-3/10117/2018-19 dated 12/12/2025 for the A.Y. 2016-17. 2. Shri S.K. Sabat, ld. A.R. appeared on behalf of the assessee and Shri Sanjib Banerjee, Sr.DR represented on behalf of the revenue. 3. It was submitted by the ld. AR that in the course of assessment, the Assessing Officer had brought to tax an amount of Rs. 51,92,000/- shown by the assessee in its balance sheet as corpus donations. It was the submission that the said amount was received towards the laboratory equipment cost which has been directly taken to the balance sheet. The break up of the same was shown at page No. 29 of the paper book which reads as follows: Printed from counselvise.com ITA No. 44/Ctk/2026 New Hope Society Vs ITO (E) 2 It was the submission that the development charges were collected inline with the direction of the Government of Orissa wherein the Government has permitted the private colleges to collect development fees which is shown at page No. 41, para. 9.2 of the paper book which reads as follows: Printed from counselvise.com ITA No. 44/Ctk/2026 New Hope Society Vs ITO (E) 3 The ld. AR further drew our attention to the depreciation schedule on the fixed assets as on 31/03/2016 (page No. 28 of the paper book) which shows the total value of laboratory equipment as on 31/03/2016 at Rs. 18,81,621/-. It was the submission that the development fees were used for the laboratory equipment. 4. In reply, the ld. Sr.DR submitted that the assessee has not been able to produce any receipts to show that the development fees has been directed to be paid towards the corpus. It was the submission that the same is liable to be treated as revenue. 5. We have considered the rival submissions. A perusal of the depreciation schedule on the fixed assets as on 31/03/2016 (page No. 28 of the paper book) shows that the opening balance of the laboratory equipment is Rs. 17,85,571.52. The additions during the year is Rs. 76,450/- for a period of more than six months and Rs. 19,500/- for a period of less than six months. The same is not found in agreement with the submission of the ld. AR. Further the assessee, admittedly, has not been able to produce any evidence before us to show that the persons who have given the development fees have desired that the development fees is to be taken to the corpus fund. In fact, a perusal of the break up of the development fees collected, shows that the fixed amount has been collected from the students as has been admitted by the ld. AR of the assessee, this is a part of the consolidated fees which has been broken down by the assessee in its accounts in line with the maximum fees permissible to be collected by the government. Admittedly, Printed from counselvise.com ITA No. 44/Ctk/2026 New Hope Society Vs ITO (E) 4 this is not a corpus donation. This being so, we find no error in the orders of the Assessing Officer and the ld. CIT(A) which calls for any interference. 6. In the result, this appeal of the assessee is dismissed. Order dictated and pronounced in the open court on 23/02/2026. Sd/- Sd/- (MADHUSUDAN SAWDIA) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi, Dated: 23/02/2026 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT(A) 4. CIT 5. DR 6. Guard File By Order Assistant Registrar, ITAT, Cuttack Printed from counselvise.com "